Aug 25 2021 0
The tension between China and America once again heated as the SEC decided to put more pressure on Chinese stocks. We will find a lot of trading opportunities in the market today thanks to that.
Quick updates:
- USD decline slowed in Tuesday session, markets seem less concerned about the spread of Delta variation.
- The U.S. Food and Drug Administration has given full approval to a COVID-19 vaccine developed by Pfizer and BioNTech, a move that could speed up the vaccination process in the United States.
- The NZD rallied as the assistant governor of the Reserve Bank of New Zealand (RBNZ), Christian Hawkesby, said policymakers were actively looking at a 50 basis point rate hike at last week's meeting. .
- The Richmond Fed Manufacturing Index came in at 9, in August, well below the estimate of 25.
All rise
Asian stocks look set to follow US equities' gains as strong corporate earnings reports and a rebound in commodities boost confidence in the post-pandemic economic recovery. Treasury bonds and the dollar fell. Futures markets rose in Japan, Australia and Hong Kong. US stock futures were steady after the S&P 500 and Nasdaq 100 indexes closed at record highs. In commodity markets, oil rose in part on the back of China's success in quelling virus outbreaks, which is alleviating some concerns about the impact of the Delta variant on demand.
Biden has a plan
Mr. Biden rejected calls from international allies and members of Congress to keep US troops in Afghanistan past the August 31 deadline, saying the US was confident it would complete the evacuation by then. . However, he has ordered his national security team to come up with contingencies if he determines that a delay is necessary. The US speeds up flights out of Kabul before the end of August deadline. Meanwhile, China has its eye on Afghanistan's $1 trillion minerals needed for modern technology.
Pressure on China's stocks
The Securities and Exchange Commission will require more than 250 Chinese companies trading in the U.S. market to fully inform investors about political and regulatory risks, expanding regulations that are nearly Here the SEC has imposed on companies intending to IPO. SEC Chairman Gary Gensler said in an interview that he envisions enhanced disclosures to be included in corporations' annual reports beginning early next year. The new details will likely include information on the shell company structure of the businesses, he added. Investors need "full and fair disclosure," Mr. Gensler said. Affected companies include tech giants Alibaba and Baidu.
Clash of views
As Fed officials prepare for the Jackson Hole symposium, their response to the pandemic is being criticized by their counterparts in Beijing as risky, trying to decouple China's monetary policy from that of the US. . The CCP's politburo has pledged "more autonomy" on macroeconomic policies, signaling a willingness to add stimulus measures as China's recovery fades, even if the Fed begins start to reduce bond purchases. Meanwhile, China's central bank is much more worried that the unprecedented US stimulus measure since the pandemic will lead to a rise in US inflation than the Fed's benevolent view. And the Hong Kong dollar, one of the dullest currencies in the world, is in the spotlight as it gets caught up in China's regulatory crackdown and bets on US interest rate hikes.
No more debate
The US Congress passed a $3.5 trillion budget resolution after a White House pressure campaign and assurances from Speaker Nancy Pelosi helped unite Democrats firmly. gold to advance the core of President Joe Biden's economic agenda. Now, the 220-212 vote has closed a rift within the party between progressives and moderates that has threatened to derail Ms Pelosi's strategy of leading the way. led the way through the $550 billion bipartisan budget framework and infrastructure bill, which the House is expected to pass by the end of next month. House and Senate committees are working to prepare portions of the spending package to fill out the details of the budget resolution on climate change, tax increases on corporations and community colleges. wealth, free tuition, expanded Medicare and more.
